United States
Environmental Protection
Agency
oEPA
Office of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9630.2
TITLE: Final FY 1987 State UST Grant Guidance
^ ^ ^
APPROVAL DATE: June # 1986
EFFECTIVE DATE: June 26 1986
ORIGINATING OFFICE: OUST
tf FINAL
D DRAFT
STATUS:
REFERENCE (other documents):
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
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OSWER DIE. 9630.2
v EPA
United States Environmental Protection Agency
Washington. DC 20460
OSWER Directive Initiation Request
Interim Directive Number
9630.2
Name of Contact Person
Mary Decker
Originator Information
^^••••^HWOM^^P^
Mail Code
WH-562A
Telephone Number
82-7904
Lead Office
D OERR
D OSW
ELI OUST
ED OWPE
G AA-OSWER
Approved for Review
Signature of Office Director
Date
Title
Final FY 1987 State UST Grant Guidance
Summary of Directive
The Guidance provides the criteria and procedures for allocation
of grant funds for State UST program activities in FY '87.
The FY 1987 State UST Grant. Guidance priorities: 1) develop State
statutory and regulatory authority; 2) promote compliance with the
Interim Prohibition; 3) continue to process UST notifications; A)
promote proper tank installation; and 5) develop alternative State
funding mechanisms.
Type of Directive (Manual, Policy Directive. Announcement, etc.)
Policy
Status
G Draft
Final
G New
I I Revision
Does this Directive Supersede Previous Directive(s)? [ _ ] Yes
If "Yes" to Either Question, What Directive (number, title)
No Doe's It Supplement Previous Directives)? [ | Yes r* | No
Review Plan
Q AA-OSWER H OUST
Q OERR Q OWPE
LJ OSW LJ Regions
D OECM
D OGC
D OPPE
D
Other (Specify)
This Request Meets OSWER Directives System Format
Signature of Lead Office Directives Officer
Date
Signature of OSWER Directives Officer
Date
EPA Form 1315-17(10-85)
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OSWER DIR. 9630.2
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
JUN 2 0 IS86
OFFICE OF
SOLID WASTE AND EMERGENCY RESPONSE
MEMORANDUM
SUBJECT: FY 87 State U
FROM:
TO:
Grant Guidance
J. Winston Porter.
Assistant Administrator
Regional Administrators
Regions I - X
Attached is the FY 87 State UST Grant Guidance. The guidance
emphasizes a shift in program tasks in FY 87 from developing a
notification program to developing State enabling legislation and
regulations and promoting compliance with the Interim Prohibition.
The Regions and States provided considerable assistance in
developing the priorities and allocation formula stated in this
guidance. Their efforts and recommendations were very helpful
and greatly appreciated. To facilitate timely negotiation and
award of grant funds to the States, I recommend that you take an
active role in contacting your States and initiating the grant
process for the FY 87 State UST grants. I will appreciate your
continued assistance with the implementation of the Underground
Storage Tank Program.
Attachment
cc: Regional UST Coordinators
Designated State UST Notification Agencies
State UST Grant Guidance Workgroup
Waste Management Division Directors
OSWER Office Directors
Harvey Pippin
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FY 87 State UST Grant Guidance
I. INTRODUCTION
The Hazardous & Solid Waste Amendments of 1984 establish a
program under a new Subtitle I of RCRA for regulation of under-
ground storage tanks (UST). Subtitle I provides for the develop-
ment and implementation of a comprehensive UST regulatory program
that is protective of human health and environment. This program
is divided into five parts: Interim Prohibition, notification,
regulation development, State authorization and enforcement. The
grant program is for the purpose of assisting States in development
and implementation of approved State underground storage tank
release detection, prevention, and correction programs under
Subtitle I. High priority grant tasks encompass:
developing State statutory and regulatory authority;
promoting compliance with Interim Prohibition;
processing notification forms;
promoting proper tank installation and
developing alternative State funding mechanisms.
The FY 87 program emphasis is on developing State enabling
legislation and technical standards for regulating underground
storage tanks and providing support to EPA to enforce the Interim
Prohibition and notification directives.
II. STATE UST GRANTS
Grant Regulations and Guidance
This Guidance provides the criteria and procedures for
allocation of grant funds for State UST program activities in
FY 87. As a supplement to the grant regulations under 40 CFR
Sections 30-45, the guidance is to be used in developing and
reviewing grant applications, awarding grants and monitoring
grant activities. Additional implementation guidance may be found
in EPA's Notification Handbook (1985) and "The Interim Prohibition:
Guidance for Design and Installation of Underground Storage Tanks"
(August 1985).
For FY 87, we will require a minimum 15% grant match from the
States. In FY 88, EPA will require a minimum 25% grant match from
the States. During FY 87, we intend to develop a multi-year funding
strategy that would consider requiring funded States to: (1) grad-
ually increase the State share to higher percentages over several
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fiscal years; and (2) investigate alternative funding mechanisms
to supplement the Federal grant.
Specific activities funded under each State's grant work
program will be negotiated by the Region. Development of draft
grant applications should begin by July 1986 so that final appli-
cations may be submitted in August. Grant applications should be
processed up to the point of award prior to September 30, 1986.
In accordance with the Agency's policy on performance-based grants,
each State will be expected to make specific task commitments as
part of its grant agreement. Commitments should reflect the prior-
ities stated in this guidance. In addition, for each major task
funded, the grant agreement must identify the resources (dollars
and Full Time Equivalents) associated with that task, together
with quarterly work commitments. All available grant funds should
be obligated to the States in FY 87. FY 86 carryover funds will
be awarded at the Regional Administrator's discretion for high
priority Subtitle I 'activities.
The grant funds under Section 2007(f)(2) may only be used for
eligible activities; i.e., those activities which are: (1) necessary
to develop and implement an approvable State UST program and (2)
allowable for funding (see OMB circular A-87 and 40 CFR 30.410).
Where States are not seeking program approval, the Regional Admin-
istrator may use funds not awarded or committed to an applicant to
supplement awards to other applicants or to support a Federal
program required in the absence of an acceptable State program.
Funds may not be diverted from Subtitle C to support Subtitle I
activities nor vice versa.
State Eligibility
States did not have to complete the first five tasks outlined
in the FY 86 State Grant Guidance (June 18, 1985) to be eligible
to receive an UST grant in FY 87. Designated State agencies may
enter into intergovernmental agreements with substate or local
government agencies to provide funds for the performance of specified
tasks (40 CFR Section 33.260). The designated State agency retains
the ultimate responsibility for ensuring that such funds are properly
expended in accordance with statutory and regulatory requirements.
Substate agencies that intend to contract out for service must
comply with applicable procurement requirements (40 CFR Part 33).
This program is not part of the Subtitle C hazardous waste
program for which States can receive authorization under Section
3006 of the Resource Conservation and Recovery Act (RCRA) or for
which State financial assistance is available under RCRA Section
3011. The definition of "regulated substances" explicitly excludes
Subtitle C hazardous waste. Separate regulations are expected to
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be published in July 1986 for underground hazardous waste tanks
under Subtitle C.V Also, States may not use monies from Subtitle
I grants to fund activities already funded under Section 106 of
the Clean Water Act.
Allotment Mechanism
To avoid penalizing States where UST programs are further
developed while offering incentives to States not as advanced in
their program development, grant funds will again be divided into
two allotments. Each Region will receive a "base" allotment of
$135k/State to be used first for implementation of high priority
tasks. (See Fundable Tasks 1-5 below.) In addition, each Region
will receive a second allotment of $35k/State. The Region may use
this second allotment to support the lesser priority tasks or any
other fundable State projects. Note that neither allotment rep-
resents any kind of State entitlement; Regions are not obliged
to award a grant to 'every State or a particular amount to any
State. Finally, Regions may apply to Headquarters for additional
funding for "special" projects from the remaining $480,000. A
protocol for development and evaluation of special projects will
be provided in Fall, 1986, All Regional projects will be
awarded by April 1, 1987.
Regional FY 87 State UST Grant Allotments
Region
1
2
3
4
5
6
7
8
9
10
Special
Total
Maximum
Base
$810k
540k
810k
1080k
810k
675k
540K
810k
945k
540k
Projects
$7, 560k
Discretionary
$210k
140k
210k
280k
210k
175k
140k
210k
245k
140k
480k
$2, 440k
Total
$!020k
680k
1020k
1360k
1020k
850k
680k
1020k
1190k
680k
480k
?10,000k
Note there may be some overlapping jurisdiction between
Subtitle C and Subtitle I if waste oil becomes a RCRA
hazardous substance. A final regulation on the definition of
waste oil is expected by November 1986. Hazardous
substances as listed in the CWA, CAA, TSCA and RCRA
will be regulated under Subtitle I provided they are not
regulated as a RCRA hazardous waste under Subtitle C.
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Fundable Tasks
The FY 87 State Grant allocation is $9,520K. The balance of
the $10 million in FY 87 State grant funds, $480K, will be
available to Regions for "special projects" that encourage State
UST program development.
This section discusses fundable tasks for FY 87 State UST
grants. Tasks are prioritized. After the first five tasks are
completed or planned for, any (or all) other tasks may be under-
taken. States need not undertake all of the first five tasks in
FY 87. Completion of all of the first five tasks will not
disqualify States from funding for other tasks. Appropriate
outputs for individual States will be determined by negotiations
between the State and the Region, considering the nature and extent
of the program the State wants to establish and the needs within
the State.
Program Task Priorities
The high priority tasks are as follows:
Task 1: Develop statutory and regulatory authority for State
UST program.^J
Begin State UST program organizational and institutional
initiatives and develop necessary State and local
agency coordination to carry out the program. Where
statutory authority exists it should be submitted
to the Region (UST coordinator) for review. If States
with enabling legislation have not developed regulations,
States may begin development of regulations. EPA plans
to propose regulations by February 1987 and promulgate
final regulations by February 1988. Where States
have initial statutory and regulatory authority, any
implementation activities are grant-eligible.
Task 2: Identify, investigate, and resolve violations of the
Interim Prohibition.
This task could be achieved through (1) identification
of new tank installations through examination of
permits, etc., (2) conducting inspections to identify
and document violations where States have inspection
authority, and refer potential violations to EPA,
and (3) where States do not have inspection authority,
refer potential violations to EPA for inspection.
Where States have regulatory requirements addressing
new tank installations, States are encouraged to
enforce their own requirements. States may also
take civil judicial actions pursuant to RCRA Section
7002 (citizen suit provision).
V Model State legislation is available from EPA.
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Task 3: Continue to process UST notifications.
Monitor incoming notification forms for completeness.
Send notices to tank owners who have submitted in-
complete notifications. Develop operational notif-
ication data management systems in each State by
9/30/87, (including State support of local data
management systems), that can compile information
received pursuant to Sections 9002 and 9005.
Task 4: Develop/initiate State or local programs for
ensuring proper tank installation.
This includes activities such as inspection and
certification programs, e.g., training programs for
tank installers.
Task 5: Investigate/develop alternative State funding
mechanisms.
This includes mechanisms such as user charges, fees
for tank installations, gasoline taxes, property
transfer tax and other alternative funding for
implementation of the program as well as clean-up
activities. ^J Some consideration should be given to
municipal bonding mechanisms to provide loan funds or
other means to enhance the ability of small businesses
to comply with Subtitle I.
Task 6: Promote compliance by disseminating regulatory
and technical information to local governments and
all other affected parties.
This includes slide shows, video presentations, public
speeches, dissemination of guidance and publicizing
enforcement authorities and actions taken.
Task 7: Secure technical assistance and training for State
and local personnel for UST program implementation.
This includes training for State personnel in leak
detection technologies and practices, tank installation,
tank inspections and field survey techniques, tank
repairs, tank closure, and corrective action techniques.
V Note that proposed CERCLA Reauthorization language offers the
possibility that Subtitle I would be amended to create some
form of UST cleanup program. This may affect the implementation
of Task 5.
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Task 8: Other tasks may be funded where the above (1-7) have
been adequately addressed.V
III. FEDERAL-STATE RELATIONSHIP (Grant Award/Grant Administration)
The State or Region may initiate the grant process. States
may submit draft grant applications to the Regions or the Regions
can provide draft work plans to their States for consideration.
Development of the grant applications should begin by July so that
final applications can be submitted in August. This will ensure
that timely grant, awards can be made. Headquarters is available
to the Region to review draft grant applications when requested.
As soon as executed, a copy of each grant agreement and application
(including work program) should be sent to Jim McCormick, Chief,
Implementation Branch, Office of Underground Storage Tanks, Wash-
ington, D.C. 20460.
In accordance with Agency policy, the Region must conduct one
on-site review. Regions should plan a mid-year and/or end-of-
year review with the States and forward to Headquarters a copy of
each State's performance evaluation final report. Regions may
arrange for more frequent reviews.
The comprehensive program review for each State should identify
the progress towards completion of fundable tasks. Reviews should
identify: (1) approaches that could be shared with other States,
(2) areas where the Region may help the State, (3) suggested
improvements in the Federal UST program, and (4) weaknesses in
the State's program. Regions should also specify program follow-
up procedures. Copies of all program review reports for FY 87
should be submitted to Jim McCormick, Chief, Implementation Branch,
Office of Underground Storage Tanks, Washington, D.C. 20460,
within 30 days of completion of the report.
Reporting Requirements
All States should have operational notification data manage-
ment systems by the end of FY 87. An operational notification data
base is defined as a data base that can provide answers to all of
the following questions based on notification data within 20 working
days of an EPA request:
V UST State Grant funds may be used to access Technical Enforce-
ment Support (TES) III and IV contracts that will be available
in the summer of 1986.
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1. How many tank notifications have been received?
2. What is the type, size, use, age and location of these
tanks?
3. For each tank taken out of operation after 1/1/74 provide:
- age, size, type and location of tank;
- type and quantity of tank contents;
- date taken out of operation.
4. What is the age, size, type, location and use of tanks
brought into use after 5/8/85?
5. How many of the tanks installed after 5/8/85 are in
compliance with Interim Prohibition?
In FY 87, States will report the estimated universe of
UST's in the State, the number of tanks reported by notification,
and the number of States with operational notification data
management systems. In addition, States will report the number of
Interim Prohibition violations and inspections identified and the
number of these violations that have been successfully resolved.
Note that these reporting requirements are based on the grant
tasks and Strategic Planning and Management System (SPMS) measures
for FY 87. (See Attachment for FY 87 SPMS measures.)
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OFFICE OF SOLID WASTE AND EMERGENCY RESPONSE
Program: Underground Storage Tanks
OBJECTIVE
MEASURE
SPMS CODE
FREQUENCY
lomplete notification requirements
md have operational data base in
;ach State by 9/30/87.
Identify and investigate all
violations of the Interim
Prohibition.
Develop enabling legislation and
draft UST regulations in each
State that would lead to programs
"no less stringent than" Subtitle
I can be developed.
Notification
Report on the following by State:
(Estimated) number of underground storage tanks.
Number of (tanks reported by notifications).
(Operational notification data management system.)
Interim Prohibition
Report on the following by State and Region separately:
Number of inspections for the interim prohibition.
Number of violations (identified).
Number of formal enforcement actions taken against facilities
in violation of the interim prohibition.
State Program Development
Report on the following by State:
States with (enabling legislation) in place.
States with (draft UST regulations developed).
States implementing (UST programs).
(please note definition of these terms on following pages)
UST-l(a)
UST-l(b)
UST-l(c)
UST-2(a)
UST-2(b)
UST-2(c)
UST-3(a)
UST-3(b)
UST-3(c)
Ql,4
By Region
Ql,2,3,4
By Region
Ql,2,3,4
By Region
Ql,2,3,4
By Region
Ql,2,3,4
By Region
Ql,2,3,4
By Region
Ql,2,3,4
By Region
Ql,2,3,4
By Region
Ql,2,3,4
By Region
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Definitions:
UST-1 Notification
Estimated number of USTs: means that each State will provide an estimate of the universe of USTs affected by the
notification requirements. This estimate will be examined at the end of the first and last quarters.
Number of tanks reported by notification: means the number of tanks reported to the designated State agency in
order to meet the notification requirements. (Quarters 2, 3, and 4 are reported cumulatively.)
Operational notification data management systems: means that the designated State agency can answer all of the
following questions based on notification data within 15 working days of an EPA request.
1. How many tank notifications have been received?
2. What is the type, size, use, age, and location of tanks that have notified?
3. For each tank taken out of operation after 1/1/74 provide:
- age, size, type and location of tank.
- type and quantity of tank contents.
- date taken out of operation.
4. Ho.< many notification orders were sent back to the owner and will need to be resubmitted?
5. What is the age, size, type, location, and use of tanks that have been brought into use after 5/8/86?
6. Number of tanks installed after 5/8/85 in compliance with the interim prohibition.
UST-2 Interim Prohibition
Number of inspections: means inspection of any tanks installed on or after May 8, 1985 to determine whether
the tanks and underground piping meet all three requirements of the prohibition. Inspections to be counted
are EPA conducted inspections, contractor inspections under EPA direction, or State inspections specified
in the grant agreement. ( Quarters 2, 3, 4 are reported cumulatively.)
Number of violations identified: means that the Region and/or State has determined that a violation of the
Interim Prohibition at a facility as defined in § 9003(g)(l) has occurred. (Show number of violations
identified by State and EPA separately.) (Quarters 2, 3, and 4 are reported cumulatively.)
Number of formal enforcement actions taken against facilities in violation of the interim prohibition:
means EPA or the State (where equivalent requirements and authorities exist) have taken formal enforcement
actions against the violation. Examples of enforcement actions are: Administrative Orders, Consent Orders,
Unilateral Orders, temporary restraining orders, civil referrals, and civil judicial actions pursuant to
RCRA § 7002 (citizen suit provision) or State equivalent such as a formal warning letter similar to EPA's
AOs. (Quarter 2,3,4 are reported cumulatively.)
UST-3 State Program Development
States with enabling legislation in place: means that State legislative action necessary for the adoption of
an UST program no less stringent than Subtitle I has been completed.
States with draft UST regulations developed: means that State regulatory action needed to adopt the Subtitle
program has been drafted and proposed for appropriate review (public notice), but need not be promulgated as
a final regulation.
States implementing UST programs: means that the State has the framework to implement an UST program "no less
stringent than" some or all of the elements of a State program described in § 9004 (a). (This does not
necessarily require enabling legislation and regulations to be in place).
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